Seller wants to use my deposit for rent?

lazygoodperson

Hi everyone, first time poster looking for some advice/opinions

I'm a FTB, and I am buying a house from a couple who are splitting (I believe), so they have no ongoing chain. We are soon getting the property report, so are almost ready to agree exchange.

The sellers have stated from the beginning that they will need to find rental accommodation, which is fine, and I am willing to leave 4 weeks in between exchange and completion for them, as they've requested.

My solicitor has just said that they are asking for part of the 10% deposit moved at exchange to be available to them to put down as a rental deposit (probably about 2k, I think he said).

My solicitor has explained that it is very rare for people to pull out after exchange, but if they did then it will be more difficult to get my money back. He has been very clear and informative in stating the risk and facts etc, but hasn't really advised one way or the other... basically leaving it to me to think it through.

I don't want to be a difficult buyer, and don't want this to fall through. Is this a reasonable risk to take? I do believe them that they are looking for a rental property, as this has been the case the whole way along. But I don't also want to be walked over/lose money!

Any opinions gladly welcomed!!

walwyn1978

I wouldn't do it. If they're struggling to get the 2k, they should get an interest free CC, stick it on that then pay it off when the sale completes.

Your solicitor is basically telling you not to do it too, albeit politely and without actually saying 'don't do it'

It may all be absolutely fine, and work out, but why incur extra stress in the house buying process by agreeing to this?

Cakeguts

What do you mean by getting the property report? Do you mean that you have completed all the searches and had the property surveyed or do you mean that you are just getting it surveyed?

What happens at exchange is that you pay part of the money for the purchase to your sellers. Then you pay the rest on completion. Follow the advice of your solicitor that is what you are paying for. Most deposits get used by each seller as the deposit for the next house.

ThePants999

I wouldn't be too concerned. If they've moved out in advance thanks to this gesture, it's extraordinarily unlikely that you'll fail to complete for a reason that's their fault!

ValiantSon

Despite some advice here be very aware that some people do fail to complete after exchange has taken place. If that were to happen to you then, as your solicitor has advised, it would be much harder to recover your money.

Don't agree to this. They can find other means of funding the deposit on their rentals.

Norman_Castle

Friends of mine have just sold their house to move in to rented accommodation. They loaded the van then waited for the money to land in their bank to use as a deposit. Bit risky as they could've ended up sofa surfing with their belongings in storage but it worked. Any reason your sellers cannot do this? For you, its much better than financing them.

DCFC79

Its not something I would do OP but if your happy to do it then do so.

lazygoodperson

@Cakeguts, sorry my post wasn't clear - I meant my solicitor has just completed all searches etc on the property

Thanks everyone for the opinions so far, it's really helpful to get an idea of what other people think! I'm a very easygoing person, so it's sometimes hard for me to say no, but I guess sometimes you have to look out for number 1 first!

@Norman I believe they have multiple children, cats and dogs, so sitting in a van might be a bit difficult haha, but it is good to know that other sellers make an effort without using their buyers' money!